H.B. 245

1

CONSUMER PROTECTION AMENDMENTS
2 2013 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Derek E. Brown
5 Senate Sponsor: Patricia W. Jones
6
7 LONG TITLE
8 General Description:
9 This bill modifies consumer protection provisions.
10 Highlighted Provisions:
11 This bill:
12 . in a provision requiring excess funds in the Consumer Protection Education and
13 Training Fund to be transferred to the General Fund, increases the threshold from
14 $100,000 to $500,000;
15 . adds an act to the list of acts considered to be deceptive acts or practices for
16 purposes of the Consumer Sales Practices Act;
17 . provides for an increase in the amount of an unpaid fine under the Consumer Sales
18 Practices Act if the fine remains unpaid more than 60 days after a final order;
19 . relocates nonconformity language in the New Motor Vehicle Warranties Act
20 relating to recreational vehicle trailers;
21 . requires a health spa to provide a copy of its liability insurance policy;
22 . requires registered agents of telephone soliciting businesses to provide proof of
23 residency;
24 . allows the cost of a criminal background check to be included in the annual
25 registration fee for telephone soliciting businesses;
26 . requires certain participants in a telephone soliciting business to meet certain
27 requirements and to submit to a criminal background check;

28 . requires telephone soliciting businesses to correct information contained in an
29 application for registration or renewal of registration if the information materially
30 changes or becomes incorrect or incomplete;
31 . provides that each telephone solicitation made in violation of applicable provisions
32 is a separate violation;
33 . modifies what constitutes a prohibited practice for a telephone solicitor;
34 . modifies a provision relating to a pawnbroker's selling of an article pawned to the
35 pawnbroker;
36 . modifies provisions relating to information to be provided with respect to a property
37 disposition hearing under the Pawnshop and Secondhand Merchandise Transaction
38 Information Act;
39 . clarifies an exemption for a private, nonprofit educational institution under the
40 Postsecondary Propriety School Act;
41 . modifies the definition of "immigration consultant" under the Immigration
42 Consultant Registration Act;
43 . requires an annual registration and an annual registration fee for immigration
44 consultants;
45 . modifies bond requirements for immigration consultants;
46 . modifies the minimum amount of an administrative fine under the Immigration
47 Consultant Registration Act; and
48 . makes technical changes.
49 Money Appropriated in this Bill:
50 None
51 Other Special Clauses:
52 None
53 Utah Code Sections Affected:
54 AMENDS:
55 13-2-8, as last amended by Laws of Utah 2008, Chapter 382
56 13-11-4, as last amended by Laws of Utah 2012, Chapter 152
57 13-11-17, as last amended by Laws of Utah 2004, Chapter 55
58 13-20-2, as last amended by Laws of Utah 2012, Chapter 77

59 13-20-8, as enacted by Laws of Utah 2012, Chapter 77
60 13-22-9, as last amended by Laws of Utah 2009, Chapter 183
61 13-23-5, as last amended by Laws of Utah 2009, Chapter 183
62 13-26-3, as last amended by Laws of Utah 2009, Chapter 183
63 13-26-8, as last amended by Laws of Utah 2005, Chapter 18
64 13-26-11, as last amended by Laws of Utah 2005, Chapter 18
65 13-32a-109, as last amended by Laws of Utah 2012, Chapters 284 and 369
66 13-32a-117, as enacted by Laws of Utah 2012, Chapter 284
67 13-34-105, as last amended by Laws of Utah 2011, Chapter 221
68 13-49-102, as enacted by Laws of Utah 2012, Chapter 375
69 13-49-202, as enacted by Laws of Utah 2012, Chapter 375
70 13-49-204, as enacted by Laws of Utah 2012, Chapter 375
71 13-49-402, as enacted by Laws of Utah 2012, Chapter 375
72
73 Be it enacted by the Legislature of the state of Utah:
74 Section 1. Section 13-2-8 is amended to read:
75 13-2-8. Consumer Protection Education and Training Fund.
76 (1) There is created a restricted special revenue fund known as the "Consumer
77 Protection Education and Training Fund."
78 (2) (a) Unless otherwise provided by a chapter listed in Section 13-2-1 , all money not
79 distributed as consumer restitution that is received by the division from administrative fines
80 and settlements, from criminal restitution, or from civil damages, forfeitures, penalties, and
81 settlements when the division receives the money on its own behalf and not in a representative
82 capacity, shall be deposited into the fund.
83 (b) Any portion of the fund may be maintained in an interest-bearing account.
84 (c) All interest earned on fund money shall be deposited into the fund.
85 (3) Notwithstanding Title 63J, Chapter 1, Budgetary Procedures Act, the division may
86 use the fund with the approval of the executive director of the Department of Commerce in a
87 manner consistent with the duties of the division under this chapter for:
88 (a) consumer protection education for members of the public;
89 (b) equipment for and training of division personnel;

90 (c) publication of consumer protection brochures, laws, policy statements, or other
91 material relevant to the division's enforcement efforts; and
92 (d) investigation and litigation undertaken by the division.
93 (4) If the balance in the fund exceeds [$100,000] $500,000 at the close of any fiscal
94 year, the excess shall be transferred to the General Fund.
95 Section 2. Section 13-11-4 is amended to read:
96 13-11-4. Deceptive act or practice by supplier.
97 (1) A deceptive act or practice by a supplier in connection with a consumer transaction
98 violates this chapter whether it occurs before, during, or after the transaction.
99 (2) Without limiting the scope of Subsection (1), a supplier commits a deceptive act or
100 practice if the supplier knowingly or intentionally:
101 (a) indicates that the subject of a consumer transaction has sponsorship, approval,
102 performance characteristics, accessories, uses, or benefits, if it has not;
103 (b) indicates that the subject of a consumer transaction is of a particular standard,
104 quality, grade, style, or model, if it is not;
105 (c) indicates that the subject of a consumer transaction is new, or unused, if it is not, or
106 has been used to an extent that is materially different from the fact;
107 (d) indicates that the subject of a consumer transaction is available to the consumer for
108 a reason that does not exist, including any of the following reasons falsely used in an
109 advertisement:
110 (i) "going out of business";
111 (ii) "bankruptcy sale";
112 (iii) "lost our lease";
113 (iv) "building coming down";
114 (v) "forced out of business";
115 (vi) "final days";
116 (vii) "liquidation sale";
117 (viii) "fire sale";
118 (ix) "quitting business"; or
119 (x) an expression similar to any of the expressions in Subsections (2)(d)(i) through
120 (ix);

121 (e) indicates that the subject of a consumer transaction has been supplied in accordance
122 with a previous representation, if it has not;
123 (f) indicates that the subject of a consumer transaction will be supplied in greater
124 quantity than the supplier intends;
125 (g) indicates that replacement or repair is needed, if it is not;
126 (h) indicates that a specific price advantage exists, if it does not;
127 (i) indicates that the supplier has a sponsorship, approval, or affiliation the supplier
128 does not have;
129 (j) (i) indicates that a consumer transaction involves or does not involve a warranty, a
130 disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if
131 the representation is false; or
132 (ii) fails to honor a warranty or a particular warranty term;
133 (k) indicates that the consumer will receive a rebate, discount, or other benefit as an
134 inducement for entering into a consumer transaction in return for giving the supplier the names
135 of prospective consumers or otherwise helping the supplier to enter into other consumer
136 transactions, if receipt of the benefit is contingent on an event occurring after the consumer
137 enters into the transaction;
138 (l) after receipt of payment for goods or services, fails to ship the goods or furnish the
139 services within the time advertised or otherwise represented or, if no specific time is advertised
140 or represented, fails to ship the goods or furnish the services within 30 days, unless within the
141 applicable time period the supplier provides the buyer with the option to:
142 (i) cancel the sales agreement and receive a refund of all previous payments to the
143 supplier if the refund is mailed or delivered to the buyer within 10 business days after the day
144 on which the seller receives written notification from the buyer of the buyer's intent to cancel
145 the sales agreement and receive the refund; or
146 (ii) extend the shipping date to a specific date proposed by the supplier;
147 (m) except as provided in Subsection (3)(b), fails to furnish a notice meeting the
148 requirements of Subsection (3)(a) of the purchaser's right to cancel a direct solicitation sale
149 within three business days of the time of purchase if:
150 (i) the sale is made other than at the supplier's established place of business pursuant to
151 the supplier's personal contact, whether through mail, electronic mail, facsimile transmission,

152 telephone, or any other form of direct solicitation; and
153 (ii) the sale price exceeds $25;
154 (n) promotes, offers, or grants participation in a pyramid scheme as defined under Title
155 76, Chapter 6a, Pyramid Scheme Act;
156 (o) represents that the funds or property conveyed in response to a charitable
157 solicitation will be donated or used for a particular purpose or will be donated to or used by a
158 particular organization, if the representation is false;
159 (p) if a consumer indicates the consumer's intention of making a claim for a motor
160 vehicle repair against the consumer's motor vehicle insurance policy:
161 (i) commences the repair without first giving the consumer oral and written notice of:
162 (A) the total estimated cost of the repair; and
163 (B) the total dollar amount the consumer is responsible to pay for the repair, which
164 dollar amount may not exceed the applicable deductible or other copay arrangement in the
165 consumer's insurance policy; or
166 (ii) requests or collects from a consumer an amount that exceeds the dollar amount a
167 consumer was initially told the consumer was responsible to pay as an insurance deductible or
168 other copay arrangement for a motor vehicle repair under Subsection (2)(p)(i), even if that
169 amount is less than the full amount the motor vehicle insurance policy requires the insured to
170 pay as a deductible or other copay arrangement, unless:
171 (A) the consumer's insurance company denies that coverage exists for the repair, in
172 which case, the full amount of the repair may be charged and collected from the consumer; or
173 (B) the consumer misstates, before the repair is commenced, the amount of money the
174 insurance policy requires the consumer to pay as a deductible or other copay arrangement, in
175 which case, the supplier may charge and collect from the consumer an amount that does not
176 exceed the amount the insurance policy requires the consumer to pay as a deductible or other
177 copay arrangement;
178 (q) includes in any contract, receipt, or other written documentation of a consumer
179 transaction, or any addendum to any contract, receipt, or other written documentation of a
180 consumer transaction, any confession of judgment or any waiver of any of the rights to which a
181 consumer is entitled under this chapter;
182 (r) charges a consumer for a consumer transaction or a portion of a consumer

183 transaction that has not previously been agreed to by the consumer;
184 (s) solicits or enters into a consumer transaction with a person who lacks the mental
185 ability to comprehend the nature and consequences of:
186 (i) the consumer transaction; or
187 (ii) the person's ability to benefit from the consumer transaction;
188 (t) solicits for the sale of a product or service by providing a consumer with an
189 unsolicited check or negotiable instrument the presentment or negotiation of which obligates
190 the consumer to purchase a product or service, unless the supplier is:
191 (i) a depository institution under Section 7-1-103 ;
192 (ii) an affiliate of a depository institution; or
193 (iii) an entity regulated under Title 7, Financial Institutions Act;
194 (u) sends an unsolicited mailing to a person that appears to be a billing, statement, or
195 request for payment for a product or service the person has not ordered or used, or that implies
196 that the mailing requests payment for an ongoing product or service the person has not received
197 or requested;
198 (v) issues a gift certificate, instrument, or other record in exchange for payment to
199 provide the bearer, upon presentation, goods or services in a specified amount without printing
200 in a readable manner on the gift certificate, instrument, packaging, or record any expiration
201 date or information concerning a fee to be charged and deducted from the balance of the gift
202 certificate, instrument, or other record; [or]
203 (w) misrepresents the geographical origin or location of the supplier's business[.]; or
204 (x) fails to comply with the restrictions of Section 15-10-201 on automatic renewal
205 provisions.
206 (3) (a) The notice required by Subsection (2)(m) shall:
207 (i) be a conspicuous statement written in dark bold with at least 12-point type on the
208 first page of the purchase documentation; and
209 (ii) read as follows: "YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT
210 ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY (or time period
211 reflecting the supplier's cancellation policy but not less than three business days) AFTER THE
212 DATE OF THE TRANSACTION OR RECEIPT OF THE PRODUCT, WHICHEVER IS
213 LATER."[.]

214 (b) A supplier is exempt from the requirements of Subsection (2)(m) if the supplier's
215 cancellation policy:
216 (i) is communicated to the buyer; and
217 (ii) offers greater rights to the buyer than Subsection (2)(m).
218 (4) (a) A gift certificate, instrument, or other record that does not print an expiration
219 date in accordance with Subsection (2)(v) does not expire.
220 (b) A gift certificate, instrument, or other record that does not include printed
221 information concerning a fee to be charged and deducted from the balance of the gift
222 certificate, instrument, or other record is not subject to the charging and deduction of the fee.
223 (c) Subsections (2)(v) and (4)(b) do not apply to a gift certificate, instrument, or other
224 record useable at multiple, unaffiliated sellers of goods or services if an expiration date is
225 printed on the gift certificate, instrument, or other record.
226 Section 3. Section 13-11-17 is amended to read:
227 13-11-17. Actions by enforcing authority.
228 (1) The enforcing authority may bring an action:
229 (a) to obtain a declaratory judgment that an act or practice violates this chapter;
230 (b) to enjoin, in accordance with the principles of equity, a supplier who has violated,
231 is violating, or is otherwise likely to violate this chapter; and
232 (c) to recover, for each violation, actual damages, or obtain relief under Subsection
233 (2)(b), on behalf of consumers who complained to the enforcing authority within a reasonable
234 time after it instituted proceedings under this chapter.
235 (2) (a) The enforcing authority may bring a class action on behalf of consumers for the
236 actual damages caused by an act or practice specified as violating this chapter in a rule adopted
237 by the enforcing authority under Subsection 13-11-8 (2) before the consumer transactions on
238 which the action is based, or declared to violate Section 13-11-4 or 13-11-5 by final judgment
239 of courts of general jurisdiction and appellate courts of this state that was either reported
240 officially or made available for public dissemination under Subsection 13-11-7 (1)(c) by the
241 enforcing authority 10 days before the consumer transactions on which the action is based, or,
242 with respect to a supplier who agreed to it, was prohibited specifically by the terms of a consent
243 judgment that became final before the consumer transactions on which the action is based.
244 (b) (i) On motion of the enforcing authority and without bond in an action under this

245 Subsection (2), the court may make appropriate orders, including appointment of a master or
246 receiver or sequestration of assets, but only if it appears that the defendant is threatening or is
247 about to remove, conceal, or dispose of the defendant's property to the damage of persons for
248 whom relief is requested. An appropriate order may include an order:
249 (A) to reimburse consumers found to have been damaged;
250 (B) to carry out a transaction in accordance with consumers' reasonable expectations;
251 (C) to strike or limit the application of unconscionable clauses of contracts to avoid an
252 unconscionable result; or
253 (D) to grant other appropriate relief.
254 (ii) The court may assess the expenses of a master or receiver against a supplier.
255 (c) If an act or practice that violates this chapter unjustly enriches a supplier and
256 damages can be computed with reasonable certainty, damages recoverable on behalf of
257 consumers who cannot be located with due diligence shall be transferred to the state treasurer
258 pursuant to Title 67, Chapter 4a, Unclaimed Property Act.
259 (d) If a supplier shows by a preponderance of the evidence that a violation of this
260 chapter resulted from a bona fide error notwithstanding the maintenance of procedures
261 reasonably adapted to avoid the error, recovery under this Subsection (2) is limited to the
262 amount, if any, by which the supplier was unjustly enriched by the violation.
263 (e) An action may not be brought by the enforcing authority under this Subsection (2)
264 more than two years after the occurrence of a violation of this chapter.
265 (3) (a) The enforcing authority may terminate an investigation or an action other than a
266 class action upon acceptance of the supplier's written assurance of voluntary compliance with
267 this chapter. Acceptance of an assurance may be conditioned on a commitment to reimburse
268 consumers or take other appropriate corrective action.
269 (b) An assurance is not evidence of a prior violation of this chapter. Unless an
270 assurance has been rescinded by agreement of the parties or voided by a court for good cause,
271 subsequent failure to comply with the terms of an assurance is prima facie evidence of a
272 violation.
273 (4) (a) In addition to other penalties and remedies set out under this chapter, and in
274 addition to its other enforcement powers under Title 13, Chapter 2, Division of Consumer
275 Protection, the division director may issue a cease and desist order and impose an

276 administrative fine of up to $2,500 for each violation of this chapter.
277 (b) All money received through administrative fines imposed under this section shall
278 be deposited in the Consumer Protection Education and Training Fund created by Section
279 13-2-8 .
280 (5) (a) Within 30 days after agency or judicial review of a final division order imposing
281 an administrative fine, the supplier on whom the fine is imposed shall pay the fine in full.
282 (b) The unpaid amount of a fine is increased by 10%:
283 (i) if the fine has not been paid in full within 60 days after the final division order
284 imposing the fine; and
285 (ii) unless the division waives the 10% increase in a stipulated payment plan.
286 Section 4. Section 13-20-2 is amended to read:
287 13-20-2. Definitions.
288 As used in this chapter:
289 (1) "Consumer" means an individual who enters into an agreement or contract for the
290 transfer, lease, purchase of a new motor vehicle other than for purposes of resale, or sublease
291 during the duration of the period defined under Section 13-20-5 .
292 (2) "Manufacturer" means manufacturer, importer, distributor, or anyone who is named
293 as the warrantor on an express written warranty on a motor vehicle.
294 (3) "Motor home" means a self-propelled vehicular unit, primarily designed as a
295 temporary dwelling for travel, recreational, and vacation use.
296 (4) (a) "Motor vehicle" includes:
297 (i) a motor home, as defined in this section, but only the self-propelled vehicle and
298 chassis sold in this state;
299 (ii) a motor vehicle, as defined in Section 41-1a-102 , sold in this state; and
300 (iii) a motorcycle, as defined in Section 41-1a-102 , sold in this state if the motorcycle
301 is designed primarily for use and operation on paved highways.
302 (b) "Motor vehicle" does not include:
303 (i) those portions of a motor home designated, used, or maintained primarily as a
304 mobile dwelling, office, or commercial space;
305 (ii) a road tractor or truck tractor as defined in Section 41-1a-102 ;
306 (iii) a mobile home as defined in Section 41-1a-102 ;

307 (iv) any motor vehicle with a gross laden weight of over 12,000 pounds, except:
308 (A) a motor home as defined under Subsection (3); and
309 (B) a farm tractor as defined in Section 41-1a-102 ;
310 (v) a motorcycle, as defined in Section 41-1a-102 , if the motorcycle is designed
311 primarily for use or operation over unimproved terrain;
312 (vi) an electric assisted bicycle as defined in Section 41-6a-102 ;
313 (vii) a moped as defined in Section 41-6a-102 ;
314 (viii) a motor assisted scooter as defined in Section 41-6a-102 ; or
315 (ix) a motor-driven cycle as defined in Section 41-6a-102 .
316 [(5) "Nonconformity":]
317 [(a) means a defect in or condition of a recreational vehicle trailer that substantially
318 impairs its use, value, or safety; and]
319 [(b) does not include a defect or condition that occurs as a result of:]
320 [(i) the use of the recreational vehicle trailer for business or commercial purposes; or]
321 [(ii) abuse, neglect, modification, or alteration of the recreational vehicle trailer by a
322 person other than the manufacturer or the manufacturer's authorized service agent.]
323 [(6)] (5) "Recreational vehicle trailer" means a travel trailer, camping trailer, or fifth
324 wheel trailer.
325 Section 5. Section 13-20-8 is amended to read:
326 13-20-8. Mediation concerning nonconformity in recreational vehicle trailer.
327 (1) An owner who purchases a new recreational vehicle trailer and the manufacturer of
328 the recreational vehicle trailer shall engage in mediation concerning resolution of a
329 nonconformity in the recreational vehicle trailer, as provided in this section, if:
330 (a) the owner notifies the manufacturer in writing of the nonconformity;
331 (b) the nonconformity is manifest in the structural or functional integrity of the roof,
332 subfloor, or wall of the recreational vehicle trailer;
333 (c) following notification under Subsection (1)(a), the manufacturer makes at least four
334 attempts to correct the nonconformity, but the nonconformity persists; [and]
335 (d) following at least four attempts by the manufacturer to correct the nonconformity,
336 the owner submits to the manufacturer a written request for mediation[.];
337 (e) the nonconformity substantially impairs the use, value, or safety of the recreational

338 vehicle trailer; and
339 (f) the nonconformity does not include a defect or condition that occurs as a result of:
340 (i) the use of the recreational vehicle trailer for business or commercial purposes; or
341 (ii) abuse, neglect, modification, or alteration of the recreational vehicle trailer by a
342 person other than the manufacturer or the manufacturer's authorized service agent.
343 (2) Mediation under this section shall:
344 (a) take place in the county in which the owner purchased the recreational vehicle
345 trailer; and
346 (b) be conducted by the Consumer Arbitration Program for Recreation Vehicles.
347 (3) The manufacturer of the recreational vehicle trailer shall pay the cost of mediation.
348 (4) The failure of mediation to resolve an owner's concerns about an alleged
349 nonconformity in the owner's recreational vehicle trailer does not impair or affect any right or
350 remedy the owner otherwise has under the law.
351 Section 6. Section 13-22-9 is amended to read:
352 13-22-9. Professional fund raiser's or fund raising counsel's or consultant's
353 permit.
354 (1) It is unlawful for any person or entity to act as a professional fund raiser or
355 professional fund raising counsel or consultant, whether or not representing an organization
356 exempt from registration under Section 13-22-8 , without first obtaining a permit from the
357 division by complying with all of the following application requirements:
358 (a) pay an application fee as determined under Section 63J-1-504 ; and
359 (b) submit a written application, verified under oath, on a form approved by the
360 division that includes:
361 (i) the applicant's name, address, telephone number, facsimile number, if any;
362 (ii) the name and address of any organization or person controlled by, controlling, or
363 affiliated with the applicant;
364 (iii) the applicant's business, occupation, or employment for the three-year period
365 immediately preceding the date of the application;
366 (iv) whether it is an individual, joint venture, partnership, limited liability company,
367 corporation, association, or other entity;
368 (v) the names and residence addresses of any officer or director of the applicant;

369 (vi) the name and address of the registered agent for service of process and a consent to
370 service of process;
371 (vii) if a professional fund raiser:
372 (A) the purpose of the solicitation and use of the contributions to be solicited;
373 (B) the method by which the solicitation will be conducted and the projected length of
374 time it is to be conducted;
375 (C) the anticipated expenses of the solicitation, including all commissions, costs of
376 collection, salaries, and any other items;
377 (D) a statement of what percentage of the contributions collected as a result of the
378 solicitation are projected to remain available to the charitable organization declared in the
379 application, including a satisfactory statement of the factual basis for the projected percentage
380 and projected anticipated revenues provided to the charitable organization, and if a flat fee is
381 charged, documentation to support the reasonableness of the flat fee; and
382 (E) a statement of total contributions collected or received by the professional fund
383 raiser within the calendar year immediately preceding the date of the application, including a
384 description of the expenditures made from or the use made of the contributions;
385 (viii) if a professional fund raising counsel or consultant:
386 (A) the purpose of the plan, management, [advise] advice, counsel or preparation of
387 materials for, or respect to the solicitation and use of the contributions solicited;
388 (B) the method by which the plan, management, [advise] advice, counsel, or
389 preparation of materials for, or respect to the solicitation will be organized or coordinated and
390 the projected length of time of the solicitation;
391 (C) the anticipated expenses of the plan, management, [advise] advice, counsel, or
392 preparation of materials for, or respect to the solicitation, including all commissions, costs of
393 collection, salaries, and any other items;
394 (D) a statement of total fees to be earned or received from the charitable organization
395 declared in the application, and what percentage of the contributions collected as a result of the
396 plan, management, [advise] advice, counsel, or preparation of materials for, or respect to the
397 solicitation are projected after deducting the total fees to be earned or received remain available
398 to the charitable organization declared in the application, including a satisfactory statement of
399 the factual basis for the projected percentage and projected anticipated revenues provided to the

400 charitable organization, and if a flat fee is charged, documentation to support the
401 reasonableness of such flat fee; and
402 (E) a statement of total net fees earned or received within the calendar year
403 immediately preceding the date of the application, including a description of the expenditures
404 made from or the use of the net earned or received fees in the planning, management, advising,
405 counseling, or preparation of materials for, or respect to the solicitation and use of the
406 contributions solicited for the charitable organization;
407 (ix) disclosure of any injunction, judgment, or administrative order against the
408 applicant or the applicant's conviction of any crime involving moral turpitude;
409 (x) a copy of any written agreements with any charitable organization;
410 (xi) the disclosure of any injunction, judgment, or administrative order or conviction of
411 any crime involving moral turpitude with respect to any officer, director, manager, operator, or
412 principal of the applicant;
413 (xii) a copy of all agreements to which the applicant is, or proposes to be, a party
414 regarding the use of proceeds;
415 (xiii) an acknowledgment that fund raising in the state will not commence until both
416 the professional fund raiser or professional fund raising counsel or consultant and the charity,
417 and its parent foundation, if any, are registered and in compliance with this chapter; and
418 (xiv) any additional information the division may require by rule.
419 (2) If any information contained in the application for a permit becomes incorrect or
420 incomplete, the applicant or registrant shall, within 30 days after the information becomes
421 incorrect or incomplete, correct the application or file the complete information required by the
422 division.
423 (3) In addition to the permit fee, an applicant failing to file a permit application or
424 renewal by the due date or filing an incomplete permit application or renewal shall pay an
425 additional fee of $25 for each month or part of a month after the date on which the permit
426 application or renewal were due to be filed.
427 Section 7. Section 13-23-5 is amended to read:
428 13-23-5. Registration -- Bond, letter of credit, or certificate of deposit required --
429 Penalties.
430 (1) (a) (i) It is unlawful for any health spa facility to operate in this state unless the

431 facility is registered with the division.
432 (ii) Registration is effective for one year. If the health spa facility renews its
433 registration, the registration shall be renewed at least 30 days prior to its expiration.
434 (iii) The division shall provide by rule for the form, content, application process, and
435 renewal process of the registration.
436 (b) Each health spa registering in this state shall designate a registered agent for
437 receiving service of process. The registered agent shall be reasonably available from 8 a.m.
438 until 5 p.m. during normal working days.
439 (c) The division shall charge and collect a fee for registration under guidelines
440 provided in Section 63J-1-504 .
441 (d) If an applicant fails to file a registration application or renewal by the due date, or
442 files an incomplete registration application or renewal, the applicant shall pay a fee of $25 for
443 each month or part of a month after the date on which the registration application or renewal
444 were due to be filed, in addition to the registration fee described in Subsection (1)(c).
445 (e) A health spa registering or renewing a registration shall provide the division a copy
446 of the liability insurance policy that:
447 (i) covers the health spa; and
448 (ii) is in effect at the time of the registration or renewal.
449 (2) (a) Each health spa shall obtain and maintain:
450 (i) a performance bond issued by a surety authorized to transact surety business in this
451 state;
452 (ii) an irrevocable letter of credit issued by a financial institution authorized to do
453 business in this state; or
454 (iii) a certificate of deposit.
455 (b) The bond, letter of credit, or certificate of deposit shall be payable to the division
456 for the benefit of any consumer who incurs damages as the result of:
457 (i) the health spa's violation of this chapter; or
458 (ii) the health spa's going out of business or relocating and failing to offer an alternate
459 location within five miles.
460 (c) (i) The division may recover from the bond, letter of credit, or certificate of deposit
461 the costs of collecting and distributing funds under this section, up to 10% of the face value of

462 the bond, letter of credit, or certificate of deposit but only if the consumers have fully recovered
463 their damages first.
464 (ii) The total liability of the issuer of the bond, letter of credit, or certificate of deposit
465 may not exceed the amount of the bond, letter of credit, or certificate of deposit.
466 (iii) The health spa shall maintain a bond, letter of credit, or certificate of deposit in
467 force for one year after it notifies the division in writing that it has ceased all activities
468 regulated by this chapter.
469 (d) A health spa providing services at more than one location shall comply with the
470 requirements of Subsection (2)(a) for each separate location.
471 (e) The division may impose a fine against a health spa that fails to comply with the
472 requirements of Subsection (2)(a) of up to $100 per day that the health spa remains out of
473 compliance. All penalties received shall be deposited into the Consumer Protection Education
474 and Training Fund created in Section 13-2-8 .
475 (3) (a) The minimum principal amount of the bond, letter of credit, or certificate of
476 credit required under Subsection (2) shall be based on the number of unexpired contracts for
477 health spa services to which the health spa is a party, in accordance with the following
478 schedule:

479	Principal Amount of Bond, Letter of Credit, or Certificate of Deposit		Number of Contracts
480	$15,000		500 or fewer
481	35,000		501 to 1,500
482	50,000		1,500 to 3,000
483	75,000		3,001 or more

484 (b) A health spa that is not exempt under Section 13-23-6 shall comply with
485 Subsection (3)(a) with respect to all of the health spa's unexpired contracts for health spa
486 services, regardless of whether a portion of those contracts [satisfy] satisfies the criteria in
487 Section 13-23-6 .
488 (4) Each health spa shall obtain the bond, letter of credit, or certificate of deposit and
489 furnish a certified copy of the bond, letter of credit, or certificate of deposit to the division prior

490 to selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any
491 contract to provide health spa services. A health spa is considered to be in compliance with
492 this section only if the proof provided to the division shows that the bond, letter of credit, or
493 certificate of credit is current.
494 (5) Each health spa shall:
495 (a) maintain accurate records of the bond, letter of credit, or certificate of credit and of
496 any payments made, due, or to become due to the issuer; and
497 (b) open the records to inspection by the division at any time during normal business
498 hours.
499 (6) If a health spa changes ownership, ceases operation, discontinues facilities, or
500 relocates and fails to offer an alternate location within five miles within 30 days after its
501 closing, the health spa is subject to the requirements of this section as if it were a new health
502 spa coming into being at the time the health spa changed ownership. The former owner may
503 not release, cancel, or terminate the owner's liability under any bond, letter of credit, or
504 certificate of deposit previously filed with the division, unless:
505 (a) the new owner has filed a new bond, letter of credit, or certificate of deposit for the
506 benefit of consumers covered under the previous owner's bond, letter of credit, or certificate of
507 deposit; or
508 (b) the former owner has refunded all unearned payments to consumers.
509 (7) If a health spa ceases operation or relocates and fails to offer an alternative location
510 within five miles, the health spa shall provide the division with 45 days prior notice.
511 Section 8. Section 13-26-3 is amended to read:
512 13-26-3. Registration and bond required.
513 (1) (a) Unless exempt under Section 13-26-4 , each telephone soliciting business shall
514 register annually with the division before engaging in telephone solicitations if:
515 (i) the telephone soliciting business engages in telephone solicitations that:
516 (A) originate in Utah; or
517 (B) are received in Utah; or
518 (ii) the telephone soliciting business conducts any business operations in Utah.
519 (b) The registration form shall designate an agent residing in this state who is
520 authorized by the telephone soliciting business to receive service of process in any action

521 brought by this state or a resident of this state.
522 (c) If a telephone soliciting business fails to designate an agent to receive service or
523 fails to appoint a successor to the agent:
524 (i) the business' application for an initial or renewal registration shall be denied; and
525 (ii) any current registration shall be suspended until an agent is designated.
526 (d) (i) For purposes of this section only, the registered agent of a telephone soliciting
527 business shall provide the division proof of residency in the state.
528 (ii) Proof of residency under Subsection (1)(d)(i) may be provided by a valid Utah
529 driver license, valid governmental photo identification issued to a resident of the state, or other
530 verifiable identification indicating residency in the state.
531 (2) The division may impose an annual registration fee set pursuant to Section
532 63J-1-504 that may include the cost of the criminal background check required under
533 Subsection (4).
534 (3) (a) Each telephone soliciting business engaging in telephone solicitation or sales in
535 this state shall obtain and maintain the following security:
536 (i) a performance bond issued by a surety authorized to transact surety business in this
537 state;
538 (ii) an irrevocable letter of credit issued by a financial institution authorized to do
539 business in this state; or
540 (iii) a certificate of deposit held in this state in a depository institution regulated by the
541 Department of Financial Institutions.
542 (b) The bond, letter of credit, or certificate of deposit shall be payable to the division
543 for the benefit of any consumer who incurs damages as the result of any telephone solicitation
544 or sales violation of this chapter.
545 (c) The division may recover from the bond, letter of credit, or certificate of deposit
546 investigative costs, attorney fees, and other costs of collecting and distributing funds under this
547 section and the costs of promoting consumer education, but only if the consumer has first
548 recovered full damages.
549 (d) A telephone soliciting business shall keep a bond, certificate of deposit, or letter of
550 credit in force for one year after it notifies the division in writing that it has ceased all activities
551 regulated by this chapter.

552 (e) The amount to be posted in the form of a bond, irrevocable letter of credit, or
553 certificate of deposit shall be:
554 (i) $25,000 if:
555 (A) neither the telephone soliciting business nor any affiliated person has violated this
556 chapter within three years preceding the date of the application; and
557 (B) the telephone soliciting business has fewer than 10 employees;
558 (ii) $50,000 if:
559 (A) neither the telephone soliciting business nor any affiliated person has violated this
560 chapter within three years preceding the date of the application; and
561 (B) the telephone soliciting business has 10 or more employees; or
562 (iii) $75,000 if the telephone soliciting business or any affiliated person has violated
563 this chapter within three years preceding the date of the application.
564 (f) For purposes of Subsection (3)(e) an "affiliated person" means a contractor,
565 director, employee, officer, owner, or partner of the telephone soliciting business.
566 (4) (a) As used in this Subsection (4), "participant" means an individual with a
567 controlling interest in or an owner, officer, director, member, principal, trustee, general partner,
568 limited partner, manager, sole proprietor, or key employee of a person seeking to register or
569 renew a registration as a telephone soliciting business.
570 (b) As part of the process to register or renew a registration as a telephone soliciting
571 business, a participant:
572 (i) shall have good moral character;
573 (ii) may not have been convicted of a felony;
574 (iii) may not, within the previous 10 years, have been convicted of a misdemeanor
575 involving moral turpitude, including theft, fraud, or dishonesty; and
576 (iv) shall submit to the division:
577 (A) the participant's fingerprints, in a form acceptable to the division, for purposes of a
578 criminal background check; and
579 (B) consent to a criminal background check by the Bureau of Criminal Identification
580 created in Section 53-10-201 .
581 [(4)] (5) The division may establish by rule the registration requirements for telephone
582 soliciting businesses under the terms of Title 63G, Chapter 3, Utah Administrative Rulemaking

583 Act. An administrative proceeding conducted by the division under this chapter shall comply
584 with the requirements of Title 63G, Chapter 4, Administrative Procedures Act.
585 (6) If information in an application for registration or for renewal of registration as a
586 telephone soliciting business materially changes or becomes incorrect or incomplete, the
587 applicant shall, within 30 days after the information changes or becomes incorrect or
588 incomplete, correct the application or submit the correct information to the division in a
589 manner that the division establishes by rule.
590 [(5)] (7) The division director may deny or revoke a registration under this section for
591 any violation of this chapter.
592 Section 9. Section 13-26-8 is amended to read:
593 13-26-8. Penalties.
594 (1) (a) Any telephone soliciting business or any person associated with a telephone
595 soliciting business, including solicitors, salespersons, agents, representatives of a solicitor, or
596 independent contractor, who violates this chapter as a first offense is guilty of a class B
597 misdemeanor.
598 (b) In the case of a second offense, the person is guilty of a class A misdemeanor.
599 (c) In the case of three or more offenses, the person is guilty of a third degree felony.
600 (d) (i) In addition to other penalties under this Subsection (1), the division director may
601 issue a cease and desist order and impose an administrative fine of up to $2,500 for each
602 violation of this chapter.
603 (ii) For purposes of Subsection (1)(d)(i), each telephone solicitation made in violation
604 of this chapter is a separate violation.
605 (iii) All money received through administrative fines imposed under this section shall
606 be deposited in the Consumer Protection Education and Training Fund created by Section
607 13-2-8 .
608 (2) Any telephone soliciting business or any person associated with a telephone
609 soliciting business, including solicitors, salespersons, agents, representatives of a solicitor, or
610 independent contractors, who violates any provision of this chapter shall be subject to a civil
611 penalty in a court of competent jurisdiction not exceeding $2,500 for each unlawful transaction.
612 Section 10. Section 13-26-11 is amended to read:
613 13-26-11. Prohibited practices.

614 (1) It is unlawful for any solicitor:
615 (a) to solicit a prospective [purchasers] purchaser on behalf of a telephone soliciting
616 business that is not registered with the division or exempt from registration under this chapter;
617 (b) to use a fictitious personal name in connection with a telephone solicitation;
618 (c) to make or cause to be made any untrue material statement, or fail to disclose a
619 material fact necessary to make any statement made not misleading, whether in connection
620 with a telephone solicitation or a filing with the division;
621 (d) to make or authorize the making of any misrepresentation about its compliance
622 with this chapter to any prospective or actual purchaser;
623 (e) to fail to refund within 30 days any amount due a purchaser who exercises the right
624 to cancel under Section 13-26-5 ; or
625 (f) to fail to orally advise a purchaser of the purchaser's right to cancel under Section
626 13-26-5 unless the solicitor is exempt under Section 13-26-4 .
627 (2) It is unlawful for any telephone soliciting business:
628 (a) to cause or permit any solicitor to violate any provision of this chapter; or
629 (b) to use inmates in telephone soliciting operations where inmates have access to
630 personal data about an individual sufficient to physically locate or contact that individual, such
631 as names, addresses, telephone numbers, Social Security numbers, credit card information, or
632 physical descriptions.
633 Section 11. Section 13-32a-109 is amended to read:
634 13-32a-109. Holding period for articles -- Penalty.
635 (1) (a) The pawnbroker may sell any article pawned to the pawnbroker:
636 (i) after the expiration of the contract period between the pawnbroker and the pledgor;
637 and
638 (ii) if the pawnbroker [has complied]:
639 (A) holds the article for at least 15 days; and
640 (B) complies with the requirements of Section 13-32a-106 regarding reporting to the
641 central database and Section 13-32a-103 .
642 (b) If an article, including scrap jewelry, is purchased by a pawn or secondhand
643 business or a coin dealer, the pawn or secondhand business or coin dealer may sell the article
644 after the pawn or secondhand business or coin dealer has held the article for 15 days and

645 complied with the requirements of Section 13-32a-106 regarding reporting to the central
646 database and Section 13-32a-103 , except that pawn, secondhand, and coin dealer businesses are
647 not required to hold precious metals or coins under this Subsection (1)(b).
648 (c) This Subsection (1) does not preclude a law enforcement agency from requiring a
649 pawn or secondhand business to hold an article if necessary in the course of an investigation.
650 (i) If the article was pawned, the law enforcement agency may require the article be
651 held beyond the terms of the contract between the pledgor and the pawn broker.
652 (ii) If the article was sold to the pawn or secondhand business, the law enforcement
653 agency may require the article be held if the pawn or secondhand business has not sold the
654 article.
655 (d) If the law enforcement agency requesting a hold on property under this Subsection
656 (1) is not the local law enforcement agency, the requesting law enforcement agency shall notify
657 the local law enforcement agency of the request and also the pawn or secondhand business.
658 (2) If a law enforcement agency requires the pawn or secondhand business to hold an
659 article as part of an investigation, the agency shall provide to the pawn or secondhand business
660 a hold ticket issued by the agency, which:
661 (a) states the active case number;
662 (b) confirms the date of the hold request and the article to be held; and
663 (c) facilitates the ability of the pawn or secondhand business to track the article when
664 the prosecution takes over the case.
665 (3) If an article is not seized by a law enforcement agency that has placed a hold on the
666 property, the property shall remain in the custody of the pawn or secondhand business until
667 further disposition by the law enforcement agency, and as consistent with this chapter.
668 (4) The initial hold by a law enforcement agency is for a period of 90 days. If the
669 article is not seized by the law enforcement agency, the article shall remain in the custody of
670 the pawn or secondhand business and is subject to the hold unless exigent circumstances
671 require the purchased or pawned article to be seized by the law enforcement agency.
672 (5) (a) A law enforcement agency may extend any hold for up to an additional 90 days
673 when exigent circumstances require the extension.
674 (b) When there is an extension of a hold under Subsection (5)(a), the requesting law
675 enforcement agency shall notify the pawn or secondhand business that is subject to the hold

676 prior to the expiration of the initial 90 days.
677 (c) A law enforcement agency may not hold an item for more than the 180 days
678 allowed under Subsections (5)(a) and (b) without obtaining a court order authorizing the hold.
679 (6) A hold on an article under Subsection (2) takes precedence over any request to
680 claim or purchase the article subject to the hold.
681 (7) When the purpose for the hold on or seizure of an article is terminated, the law
682 enforcement agency requiring the hold or seizure shall within 15 days after the termination:
683 (a) notify the pawn or secondhand business in writing that the hold or seizure has been
684 terminated;
685 (b) return the article subject to the seizure to the pawn or secondhand business; or
686 (c) if the article is not returned to the pawn or secondhand business, advise the pawn or
687 secondhand business either in writing or electronically of the specific alternative disposition of
688 the article.
689 (8) If the law enforcement agency does not notify the pawn or secondhand business
690 that a hold on an item has expired, the pawn or secondhand business shall send a letter by
691 registered or certified mail to the law enforcement agency that ordered the hold and inform the
692 agency that the holding period has expired. The law enforcement agency shall respond within
693 30 days by:
694 (a) confirming that the holding period has expired and that the pawn or secondhand
695 business may manage the item as if acquired in the ordinary course of business; or
696 (b) providing written notice to the pawn or secondhand business that a court order has
697 continued the period of time for which the item shall be held.
698 (9) The written notice under Subsection (8)(b) is considered provided when:
699 (a) personally delivered to the pawn or secondhand business with a signed receipt of
700 delivery;
701 (b) delivered to the pawn or secondhand business by registered or certified mail; or
702 (c) delivered by any other means with the mutual assent of the law enforcement agency
703 and the pawn or secondhand business.
704 (10) If the law enforcement agency does not respond within 30 days under Subsection
705 (8), the pawn or secondhand business may manage the item as if acquired in the ordinary
706 course of business.

707 (11) A violation of this section is a class B misdemeanor and is also subject to civil
708 penalties under Section 13-32a-110 .
709 Section 12. Section 13-32a-117 is amended to read:
710 13-32a-117. Property disposition if no criminal charges filed -- Administrative
711 hearing.
712 (1) The original victim or the pawn or secondhand business may request an
713 administrative property disposition hearing with the Division of Consumer Protection if:
714 (a) more than 30 days have passed since:
715 (i) the law enforcement agency placed a hold on the property; or
716 (ii) the property was seized by the law enforcement agency; and
717 (b) an agreement pursuant to Subsection 13-32a-115 (2)(b) has not been reached.
718 (2) The original victim or the pawn or secondhand business shall provide to the
719 Division of Consumer Protection at the time of the request for a property disposition hearing
720 [under this section]:
721 (a) a copy of the sworn statement of the original victim taken pursuant to Section
722 13-32a-115 and the case number assigned by the law enforcement agency[.]; and
723 (b) a written notice from the prosecuting agency with jurisdiction over the case
724 involving the property that the prosecuting agency has made an initial determination under
725 Section 77-24-2 and this chapter that the property is no longer needed as evidence.
726 [(3) (a) The Division of Consumer Protection shall notify the law enforcement agency
727 in writing of the request for a property disposition hearing.]
728 [(b) The law enforcement agency shall forward the notice to the prosecution agency
729 having jurisdiction over the case involving the property.]
730 [(c) (i) The prosecution agency shall, within five business days of receiving the notice,
731 make an initial determination pursuant to Section 77-24-2 and this chapter of whether
732 continued hold or seizure regarding the property as evidence in a criminal trial is necessary.]
733 [(ii) If the prosecuting agency determines the property is no longer needed as evidence,
734 the law enforcement agency shall notify in writing the pawn or secondhand business and the
735 original victim of the prosecuting agency's determination as soon as reasonably possible.]
736 [(4)] (3) (a) Within 30 days after receiving the request [and notification from law
737 enforcement that the property is not needed as evidence pursuant to Section 77-24-2 and this

738 chapter] for a property disposition hearing from the original victim or the pawn or secondhand
739 business, the Division of Consumer Protection shall schedule an adjudicative hearing in
740 accordance with Title 63G, Chapter 4, Administrative Procedures Act, to determine ownership
741 of the claimed property. The division shall provide written notice of the hearing to the pawn or
742 secondhand business and the original victim.
743 (b) The division shall conduct the hearing to determine disposition of the claimed
744 seized property, taking into consideration:
745 (i) the proof of ownership of the property and compliance with Subsection
746 13-32a-115 (1) by the original victim;
747 (ii) the claim of ownership by the pawn or secondhand business and the potential
748 financial loss to the business; and
749 (iii) compliance by the pawn or secondhand business with the requirements of this
750 chapter.
751 (c) If the division determines that the property should be released to the pawn or
752 secondhand business, the original victim retains a right of first refusal over the property for 15
753 days and may purchase the property at the amount financed or paid by the pawn or secondhand
754 business.
755 (d) The party to whom the division determines the property is to be released shall
756 maintain possession of the property for the duration of any time period regarding any
757 applicable right of appeal.
758 Section 13. Section 13-34-105 is amended to read:
759 13-34-105. Exempted institutions.
760 (1) This chapter does not apply to:
761 (a) a Utah institution directly supported, to a substantial degree, with funds provided
762 by:
763 (i) the state;
764 (ii) a local school district; or
765 (iii) other Utah governmental subdivision;
766 (b) an institution that offers instruction exclusively at or below the 12th grade level;
767 (c) a lawful enterprise that offers only professional review programs, such as C.P.A.
768 and bar examination review and preparation courses;

769 (d) a private, postsecondary educational institution that is owned, controlled, operated,
770 or maintained by a bona fide church or religious denomination, which is exempted from
771 property taxation under the laws of this state;
772 (e) subject to Subsection (3) and Section 13-34-107.5 , a school or institution that is
773 accredited by a regional or national accrediting agency recognized by the United States
774 Department of Education;
775 (f) subject to Subsection (4), a business organization, trade or professional association,
776 fraternal society, or labor union that:
777 (i) sponsors or conducts courses of instruction or study predominantly for bona fide
778 employees or members; and
779 (ii) does not, in advertising, describe itself as a school;
780 (g) an institution that:
781 (i) (A) exclusively offers general education courses or instruction solely remedial,
782 avocational, nonvocational, or recreational in nature; and
783 (B) does not advertise occupation objectives or grant educational credentials; or
784 (ii) exclusively prepares individuals to teach courses or instruction described in
785 Subsection (1)(g)(i)(A);
786 (h) an institution that offers only workshops or seminars:
787 (i) lasting no longer than three calendar days; and
788 (ii) for which academic credit is not awarded;
789 (i) an institution that offers programs:
790 (i) in barbering, cosmetology, real estate, or insurance; and
791 (ii) that are regulated and approved by a state or federal governmental agency;
792 (j) an education provider certified by the Division of Real Estate under Section
793 61-2c-204.1 ;
794 (k) an institution that offers aviation training if the institution:
795 (i) (A) is approved under Federal Aviation Regulations, 14 C.F.R. Part 141; or
796 (B) provides aviation training under Federal Aviation Regulations, 14 C.F.R. Part 61;
797 and
798 (ii) exclusively offers aviation training that a student fully receives within 24 hours
799 after the student pays any tuition, fee, or other charge for the aviation training;

800 (l) an institution that provides emergency medical services training if all of the
801 institution's instructors, course coordinators, and courses are approved by the Department of
802 Health;
803 (m) an institution that exclusively conducts nurse aide training programs that are
804 approved by the State Office of Vocational Education and are subject to the Nurse Aide
805 Registry; and
806 (n) a private, nonprofit educational institution that has been in continuous operation as
807 a private, nonprofit educational institution for at least 20 years, except as provided in
808 Subsection (5), Subsection 13-34-106 (8) and Section 13-34-107.6 .
809 (2) If available evidence suggests that an exempt institution under this section is not in
810 compliance with the standards of registration under this chapter and applicable division rules,
811 the division shall contact the institution and, if appropriate, the state or federal government
812 agency to request corrective action.
813 (3) An institution, branch, extension, or facility operating within the state that is
814 affiliated with an institution operating in another state shall be separately approved by the
815 affiliate's regional or national accrediting agency to qualify for the exemption described in
816 Subsection (1)(e).
817 (4) For purposes of Subsection (1)(f), a business organization, trade or professional
818 association, fraternal society, or labor union is considered to be conducting the course
819 predominantly for bona fide employees or members if it hires a majority of the persons who:
820 (a) successfully complete its course of instruction or study with a reasonable degree of
821 proficiency; and
822 (b) apply for employment with that same entity.
823 (5) An institution subject to, or expressly exempted from any part of, this chapter is:
824 (a) established as an educational institution within the state;
825 (b) independent of the state system of higher education;
826 (c) subject to compliance with the applicable provisions of this chapter; and
827 (d) authorized to operate educational programs beyond secondary education, including
828 programs leading to a degree or certificate.
829 Section 14. Section 13-49-102 is amended to read:
830 13-49-102. Definitions.

831 As used in this chapter:
832 (1) "Client" means a person who receives services from or enters into an agreement to
833 receive services from an immigration consultant.
834 (2) "Compensation" means anything of economic value that is paid, loaned, granted,
835 given, donated, or transferred to a person for or in consideration of:
836 (a) services;
837 (b) personal or real property; or
838 (c) another thing of value.
839 (3) "Department" means the Department of Commerce.
840 (4) "Division" means the Division of Consumer Protection in the department.
841 (5) "Immigration consultant" means a person who provides nonlegal assistance or
842 advice on an immigration matter including:
843 (a) completing a document provided by a federal or state agency, but not advising a
844 person as to the person's answers on the document;
845 (b) translating a person's answer to a question posed in a document provided by a
846 federal or state agency;
847 (c) securing for a person supporting documents, such as a birth certificate, that may be
848 necessary to complete a document provided by a federal or state agency;
849 (d) submitting a completed document on a person's behalf and at the person's request to
850 the United States Citizenship and Immigration Services; [and] or
851 (e) for valuable consideration, referring a person to a person who could undertake legal
852 representation activities in an immigration matter.
853 (6) "Immigration matter" means a proceeding, filing, or action affecting the
854 immigration or citizenship status of a person that arises under:
855 (a) immigration and naturalization law;
856 (b) executive order or presidential proclamation; or
857 (c) action of the United States Citizenship and Immigration Services, the United States
858 Department of State, or the United States Department of Labor.
859 Section 15. Section 13-49-202 is amended to read:
860 13-49-202. Application for registration.
861 (1) To register as an immigration consultant a person shall:

862 (a) submit an annual application in a form prescribed by the division;
863 (b) pay [a] an annual registration fee determined by the department in accordance with
864 Section 63J-1-504 , which includes the costs of the criminal background check required under
865 Subsection (1)(e);
866 (c) have good moral character in that the applicant has not [be] been convicted of:
867 (i) a felony; or
868 (ii) within the last 10 years, a misdemeanor involving theft, fraud, or dishonesty;
869 (d) submit fingerprint cards in a form acceptable to the division at the time the
870 application is filed; and
871 (e) consent to a fingerprint background check by the Utah Bureau of Criminal
872 Identification regarding the application.
873 (2) The division shall register a person who qualifies under this chapter as an
874 immigration consultant.
875 Section 16. Section 13-49-204 is amended to read:
876 13-49-204. Bonds -- Exemption -- Statements dependent on posting bond.
877 (1) Except as provided in Subsection [(5)] (6), an immigration consultant shall post a
878 cash bond or surety bond:
879 (a) in the amount of $50,000; and
880 (b) payable to the division for the benefit of any person damaged by a fraud,
881 misstatement, misrepresentation, unlawful act, omission, or failure to provide services of an
882 immigration consultant, or an agent, representative, or employee of an immigration consultant.
883 (2) A bond required under this section shall be:
884 (a) in a form approved by the attorney general; and
885 (b) conditioned upon the faithful compliance of an immigration consultant with this
886 chapter and division rules.
887 (3) An immigration consultant shall keep the bond required under this section in force
888 for one year after the immigration consultant's registration expires or the immigration
889 consultant notifies the division in writing that the immigration consultant has ceased all
890 activities regulated under this chapter.
891 [(3)] (4) (a) If a surety bond posted by an immigration consultant under this section is
892 canceled due to the person's negligence, the division may assess a $300 reinstatement fee.

893 (b) No part of a bond posted by an immigration consultant under this section may be
894 withdrawn:
895 (i) during the one-year period the registration under this chapter is in effect; or
896 (ii) while a revocation proceeding is pending against the person.
897 [(4)] (5) (a) A bond posted under this section by an immigration consultant may be
898 forfeited if the person's registration under this chapter is revoked.
899 (b) Notwithstanding Subsection [(4)] (5)(a), the division may make a claim against a
900 bond posted by an immigration consultant for money owed the division under this [division]
901 chapter without the [commission] division first revoking the immigration consultant's
902 registration.
903 [(5)] (6) The requirements of this section do not apply to an employee of a nonprofit,
904 tax-exempt corporation who assists clients to complete an application document in an
905 immigration matter, free of charge or for a fee, including reasonable costs, consistent with that
906 authorized by the Board of Immigration Appeals under 8 C.F.R. Sec. 292.2.
907 [(6)] (7) A person may not disseminate by any means a statement indicating that the
908 person is an immigration consultant, engages in the business of an immigration consultant, or
909 proposes to engage in the business of an immigration consultant, unless the person has posted a
910 bond under this section that is maintained throughout the period covered by the statement, such
911 as a listing in a telephone book.
912 [(7)] (8) An immigration consultant may not make or authorize the making of an oral
913 or written reference to the immigration consultant's compliance with the bonding requirements
914 of this section except as provided in this chapter.
915 Section 17. Section 13-49-402 is amended to read:
916 13-49-402. Violations -- Actions by division.
917 (1) The division shall investigate and take action under this part for violations of this
918 chapter.
919 (2) A person who violates this chapter is subject to:
920 (a) a cease and desist order; and
921 (b) an administrative fine of not less than [$100] $1,000 or more than $5,000 for each
922 separate violation.
923 (3) An administrative fine shall be deposited in the Consumer Protection Education

924 and Training Fund created in Section 13-2-8 .
925 (4) (a) A person who intentionally violates this chapter:
926 (i) is guilty of a class A misdemeanor; and
927 (ii) may be fined up to $10,000.
928 (b) A person intentionally violates this part if the violation occurs after the division,
929 attorney general, or a district or county attorney notifies the person by certified mail that the
930 person is in violation of this chapter.




Legislative Review Note
as of 12-28-12 2:47 PM

Office of Legislative Research and General Counsel

[Bill Documents]